Closed School Loan Discharge Packet
 If you attended a school that closed before you were able to
complete your diploma or degree, you may be eligible for a
cancellation, or “discharge,” of the federal student loans you
used to pay for your education.
 Use this packet to determine your eligibility for Closed School
Loan Discharge and for a 6-Step Guide to submitting your
application.
What Happens If Your Federal Student Loans Are Discharged?
 Your federal loans will be cancelled and you will not have to repay
the loan or any loan fees.
 You will receive a refund of any payments you made on your
federal loans.
 Any negative information on your credit report related
to your federal loans will be removed.
6 Steps to Discharge
To figure out if you are eligible and to submit an application, follow these six steps:
 Step 1: Figure Out If You Have Qualifying Federal Loans
 Step 2: Determine If You Are Eligible Based On Your Personal Situation
 Step 3: Complete A Close School Discharge Application
 Step 4: Gather Important Documents To Submit With Your Application
 Step 5: Submit Your Application And Follow-Up
 Step 6: Information About Your Private Loans Or Cash Payments
This packet was created on October 14, 2014.
THIS PACKET IS NOT MEANT TO PROVIDE A LEGAL OPINION, OFFER ADVICE, OR
SUBSTITUTE FOR THE ADVICE OF A LICENSED ATTORNEY.
If you believe you need legal assistance,
find contact information for your local Legal Aid office at:
lsc.gov/find-legal-aid
This Packet is not meant to provide a legal opinion, offer advice, or substitute for the advice of a licensed attorney.
10/14/2013 - Page 2
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Step 1: Do I Have Loans Eligible For Discharge?
 Only federal loans from the Department of Education are eligible.
These loans must have been used to pay for education at the school
that closed.
Eligible Loans
 Federal Family Education Loan Program
(FFEL) loans
 Direct loans
 Stafford loans
 Parent PLUS loans
 Graduate PLUS loans
 Perkins loans
 Federal Consolidation loans: If any of the
underlying loans were used to pay for
enrollment at the school that closed, you
can apply for a discharge of the underlying
loans. If granted, you will receive a credit
for the amount of the underlying loans
related to the closed school.
Non-Eligible Loans/Grants
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Loans from the closed school
Private student loans from a bank or
other private lender
State government loans
Pell Grants
State government grants
GI Bill funds
Any other funds from Department of
Defense or Veterans Administration
Private consolidation loans
If you are unsure which loans you have, you can find out using these resources:
 Call 1-800-4-FED-AID (1-800-730-8913); or
 Check your account on the National Student Loan Data System (NSLDS) at:
https://www.nslds.ed.gov/nslds_SA/SaFinLoginPage.do
o If you have a Personal Identification Number (PIN) you used for your FAFSA application,
you may use this to log into your NSLDS account.
o If you cannot remember your PIN, you may request a duplicate PIN or a new PIN at:
http://www.pin.ed.gov/PINWebApp/pinindex.jsp.
o If you get a new PIN number, you should be able to log on to your NSLDS account in
about one week after you request it.
Remember, only your federal loans will be listed on the NSLDS or by 1-800-4-FED-AID.
 If you have any loans that are not listed, they are probably private loans that are
not eligible for loan discharge. Only the listed loans will be eligible.
This Packet is not meant to provide a legal opinion, offer advice, or substitute for the advice of a licensed attorney.
10/14/2013 - Page 3
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Step 2: Am I Eligible Based on My Personal Situation?
 If you have determined that you have eligible federal loans, the next
step is to determine whether you are eligible for a discharge based on
your circumstances.
Borrowers Who Are Eligible
Borrowers Who Are not Eligible
 You attended a school that closed
before you were able to complete your
program (including classes and
required externships).
 You withdrew from the school within
120 days before it closed.
 You were on an approved leave of
absence when the school closed.
 You are a parent of an eligible student
and have a Parent PLUS loan.
 You completed your program before
the school closed.
 You completed a comparable program
at another school that accepted one or
more credits from the closed school.
 You completed your program through a
“teach-out.”
 You completed your program (including
externships and classes), but didn’t
receive your diploma or degree.
 You have a Parent PLUS loan, but the
student you helped does not meet the
eligibility requirements.
Key Issue:
Your eligibility may depend on whether you decide to:
 Participate in a Teach-Out; or
 Transfer credits to another school
This Packet is not meant to provide a legal opinion, offer advice, or substitute for the advice of a licensed attorney.
10/14/2013 - Page 4
Teach-Outs
What is a Teach-Out?
 Teach-outs are arrangements that allow students to complete their programs, approved by
your school’s accreditor.
 You will not be required to make any payments to finish the term that you already paid for.
 You may be required to pay for any new terms that you did not pay the closed school for.
 Teach-outs may be offered by the school that is closing or by a different school.
If the Teach-Out is offered at your current campus by the school that is closing:
 You will not qualify for a closed school discharge, even if you choose not to participate in the
teach-out.
If the Teach-Out is offered by the school that is closing at a different campus or is
offered by a different school:
 You do not have to participate in teach-out.
 If you choose not to participate, you are eligible for a discharge of your federal loans.
 If you give the teach-out a try, but drop out before completing, you will also be eligible for a
discharge.
 If you participate and complete your program, you will you not be eligible for a discharge.
Credit Transfers
 If another school accepts one or more of your credits, you will not qualify for the discharge of
your federal loans if:
o You complete the program.
o Note: Although this is not in the federal law, the Department has stated that you are not
eligible for a loan discharge only if your new program is the same or comparable to the
program you were enrolled in at your closed school.
 Beware: If a new school agrees to accept some or all of your credits, ask the school to agree
to this in writing, for example by specifying how many credits will transfer on your new
enrollment agreement, before you enroll or agree to take out student loans.
This Packet is not meant to provide a legal opinion, offer advice, or substitute for the advice of a licensed attorney.
10/14/2013 - Page 5
You Are Eligible for a Discharge of your Federal Loans if:
 You (or the student, if you have a Parent PLUS loan) meet one of the following:
o Your school closed before you were able to complete your program (including classes and
required externships).
o You withdrew from the school within 120 days before it closed (or some longer period if the
Department determines there were “exceptional circumstances related to the school’s closing,”
see below).
o You were on an approved leave of absence when the school closed.
 And you (or the student, if you have a Parent PLUS loan) meet all of the following:
o You are not currently enrolled in a Teach-Out.
o You are not currently enrolled in the same or comparable program at a school that accepted
one or more credits from the closed school.
o You did not complete your program through a Teach-Out.
o You did not complete the same or comparable program after transferring one or more credits
to another school.
How to Seek and Extension of the 120-Day Withdrawal Period:
 If you withdrew over 120 days before the school closed, you may ask the Department of
Education to extend the 120-day period and grant you a discharge if you can show there were
“exceptional circumstances related to the school’s closing.”
 Exceptional circumstances include:
o The school’s loss of accreditation.
o The discontinuation of a majority of the school’s programs.
o An action by a state to revoke the school’s license to operate or award credentials.
o A finding by a state or federal government agency that the school violated state or
federal law.
 To seek an extension, you must submit proof of the above to the Department, or proof of any
other irregularities that you think may constitute exceptional circumstances. For example, you
may submit:
o Your own declaration describing any irregularities you witnessed, such as frequent
changes of teachers, your school not being open when it was supposed to be, or broken
instructional equipment that was not fixed, etc.
o Declarations from other students and/or staff of the school.
 However, there is no guaranty that the Department will find exceptional circumstances based
on the evidence you submit.
This Packet is not meant to provide a legal opinion, offer advice, or substitute for the advice of a licensed attorney.
10/14/2013 - Page 6
Many other for-profit schools will tell you that they are offering teach-outs or will
accept your credits and will promise to let you finish your education for free.
o Before agreeing to participate in a teach-out, make sure the teach-out is approved by the
accreditor.
o Make sure the school provides an agreement in writing that (1) you will be not be charged
any further money to complete the term you already paid for or (2) states how many
credits it is accepting from the closed school.
o Ask for information about the success of the schools’ students.
 What percentage of students graduate?
 What percentage are employed in their area of study?
 What percentage pass certification or licensure exams, when these are required for
employment?
 If any of these rates are low, think twice about participating in the teach-out or
otherwise enrolling.
 Check out the College Score Card to compare schools in your area:
http://collegecost.ed.gov/scorecard/index.aspx.
o Talk to professionals in the field you are studying to find out (1) whether they hire
students from the school and (2) how much they would pay a graduate from the school.
o Make sure the school is licensed (if required by state law) by checking the website of the
government agency in your state that oversees for-profits schools.
o Ask to sit in on a class for free, and talk to students and teachers about the school.
o If the school won’t let you sit in a class, refuses to provide information, refuses to put
anything in writing, or pressures you to enroll first, it is probably not a place you want to
attend.
This Packet is not meant to provide a legal opinion, offer advice, or substitute for the advice of a licensed attorney.
10/14/2013 - Page 7
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Step 3: How to Complete Your Discharge Application
 Please follow the step-by-step instructions in the following chart to
complete the “Loan Discharge Application: School Closure.” A copy of
this form (exp. date of 08/31/2017) is included as Attachment A.
Your complete Closed School Discharge Application package should include:
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Completed Application Form
Cover letter
If you were on an approved leave of absence when the school closed, a copy of the school
document approving your leave of absence or your own declaration (see below)
A copy of your Enrollment Agreement with your closed school
Any evidence of your school’s closure, such as a newspaper article
Any notices you have received from the school about its closure
Any notices from your State stating that the school has officially closed
Filling out your Closed-School Discharge Application
 You may download additional copies of this form at:
http://ifap.ed.gov/dpcletters/attachments/GEN1418AttachLoanDischargeAppSchoolClosure
.pdf
 Complete all required sections of the form. If you do not, your application may be rejected.
Where the form indicates, you can skip certain questions that do not apply to you.
 You may submit your application at any time, there is no deadline for submission.
Section
Section 1:
Borrower
Identification
Number
Instructions
Check the box if you have a new address or phone number.
Enter all the following information for the person seeking
discharge (for Parent PLUS loan borrowers seeking discharge,
enter your own information here):
 Social Security Number
 Name
 Address
 City, State, Zip Code
 Telephone – Primary
 Telephone – Alternate: You do not have to provide an
alternate telephone number. If you do not, enter “N/A”
which means “Not Applicable.”
 Email (optional): You also do not have to provide an email
address. If you do not, enter “N/A.”
This Packet is not meant to provide a legal opinion, offer advice, or substitute for the advice of a licensed attorney.
10/14/2013 - Page 8
Section
Section 2:
School Closure
Information
Number
1. Are you a
student borrower
or a parent
borrower?
Instructions
Check the first box if you are a student with federal loans that
you used to attend the school that closed. Skip to Question 4.
2. Student’s Name
If you are a parent borrower, enter the last name, first name,
and middle initial of the student. If you are the student, skip this
question.
3. Student’s Social
Security Number
If you are a parent borrower, enter the student’s social security
number. If you are the student, skip this question.
4. Closed School
Name
5. Closed School
Address
Enter the closed school’s name.
6. Dates of
Attendance
Enter:
 The month, day and year the student first attended class.
This information should be on the enrollment agreement.
If you don’t have a copy of it, approximate the date.
 To: The month, day and year the school closed. This is the
date the student could no longer attend class due to the
school’s closure.
7. Name of
Program
Enter the name of the program the student was enrolled in
when the school closed. For example, if the student was
enrolled in a Medical Assisting program, enter “Medical
Assisting.”
Check the second box if you are a parent who took loans to pay
for your child’s tuition. Continue to Question 2.
Enter the address of the closed school. This information should
be available on the student’s enrollment agreement or other
documents from the school.
This Packet is not meant to provide a legal opinion, offer advice, or substitute for the advice of a licensed attorney.
10/14/2013 - Page 9
Section
Section 2:
School Closure
Information
(cont’d)
Number
8. Did the student
complete the
program at the
closed school?
Instructions
Check the YES or NO box to answer whether the student
completed his/her program of study before the school closed.
 If the student had additional classes to complete before
he/she could graduate, enter NO.
 If the school required the student to complete an externship
or internship before he/she was allowed to graduate, and if
the student was unable to do so because of the school
closure, then enter NO.
 If, however, the student completed all the requirements to
graduate, enter YES even if he/she did not get a diploma,
certificate, or degree. (If this is the case, you will not qualify
for the discharge of your federal loans and there is no need
to submit this form.)
9. Approved Leave
of Absence
If the student was on an approved leave of absence when the
school closed:
 Check YES. Enter the dates of the approved leave, which
should be included on a written document the school
provided when the student obtained approval for the leave
of absence. If you do not have a document showing the
approved leave of absence, enter the dates if you know
them, or the month and year if you know those. If you are
estimating, write “estimated dates” next to these dates.
 If you do not have the paperwork, include a declaration
with your cover letter describing the circumstances of the
leave, when approved by the school, and whether you tried
to obtain documentation after the school closed and what
happened. A sample is included as Attachment C.
 You can skip to Question 13
If the student was not on an approved leave of absence:
 Check NO, and continue to Question 10.
10. Was the
student enrolled
when the school
closed?
Check YES if the student was enrolled when the school closed.
Skip to Question 13.
Check NO if the student was no longer enrolled when the
school closed. Continue to Question 11.
This Packet is not meant to provide a legal opinion, offer advice, or substitute for the advice of a licensed attorney.
10/14/2013 - Page 10
Section
Section 2:
School Closure
Information
(cont’d)
Number
11. Did the student
withdraw from the
school before it
closed?
Instructions
Check YES if the student withdrew before the school closed.
Continue to Question 12.
12. Date the
Student Withdrew
Enter the month, day and year the student withdrew from the
school. The date should not be after the day that the school
closed.
 As long as this date is within 120 days before the school
closed, you should be eligible for a discharge.
 If you have any documents showing the date you
withdrew, you should include a copy with your
application.
13. Did the
student continue
the program at a
different campus
or another school?
Check YES if the student is currently completing or completed
the same or comparable program at a different campus or at
another school. Continue to Question 14.
14. Is the student
enrolled at another
campus or school
through a “teachout” program?
Check YES if the student is currently completing or completed
the same or comparable program through an approved teachout. (The student will not qualify for the discharge of federal
loans and there is no need to submit this form.)
Check NO if the student did not withdraw from the school
before it closed. Skip to Question 13.
Check NO if the student is not currently completing and did not
complete the same or comparable program after the school
closed. Skip to Question 16.
Check NO if the student did not continue the same or
comparable program through an approved teach-out. Continue
to Question 15.
15. Did the student
enroll in a different
school that
accepted any
credits awarded by
the closed school?
Check YES if the new school accepted any of the closed school’s
credits. (The student will not qualify for the discharge of federal
loans and there is no need to submit this form.)
Check NO if the new school did not accept any of the closed
school’s credits and made the student start his/her education
over from the beginning. Continue to Question 16.
This Packet is not meant to provide a legal opinion, offer advice, or substitute for the advice of a licensed attorney.
10/14/2013 - Page 11
Section
Section 2:
School Closure
Information
(cont’d)
Number
16. Did the closed
school make any
refunds to your
lenders?
Instructions
Check YES if you know that the closed school refunded any
money to any of your lenders or people collecting on your loans
(including the government). Continue to Question 17.
Check NO if you know that no refunds were made.
Skip to Question 19.
If you don’t know, check DON’T KNOW.
Skip to Question 19.
17. How much did
the close school
refund to your
lenders?
Enter the amount the closed school paid to the holder of your
student loans (i.e., to your federal student loan servicers, or to
a bank that made you a private loan), if you know the amount.
18. Why did the
If you know why the school paid a refund to your lender, write
closed school pay a that explanation here. For example, if the school paid the
refund?
government a partial refund because you withdrew, you may
write that here.
If you don’t know, write DON’T KNOW.
19. Have you made Check YES if you filed a claim for reimbursement with a state
a claim for tuition tuition recovery fund or anyone else. Continue to Question 20.
reimbursement?
Check NO if you have not filed a state tuition recovery fund
claim or a claim with anyone else. Skip Questions 20, 21 and 22
and continue to Section 3.
Check DON’T NOW if you do not know if you have made a
claim. Skip Questions 20, 21 and 22 and continue to Section 3.
20. Information
about your claim
for tuition
reimbursement
If you answered YES to question 19, enter the information
about the person or agency that received your claim for tuition
reimbursement:
a) Enter the name of the person or agency to whom you
submitted your claim.
b) Enter the address where you sent your claim.
c) Enter the telephone number of the person or agency
you sent your claim to.
This Packet is not meant to provide a legal opinion, offer advice, or substitute for the advice of a licensed attorney.
10/14/2013 - Page 12
Section
Section 2:
School Closure
Information
(cont’d)
Section 3:
Certification,
Assignment,
and
Authorization
Number
21. Amount of
tuition you
requested and
your claim’s status
Instructions
If you answered YES to question 19, enter the information
about your claim for tuition reimbursement:
a) Enter how much money you requested in tuition
reimbursement.
b) Enter the current status of your claim. For example, if
you are still waiting to hear about your claim, write
“Pending,”
22. What is the
amount of tuition
reimbursement
that you have
received?
If you answered YES to question 19, enter how much tuition
reimbursement you have received.
If you have not received any money for your tuition
reimbursement, write “none.”
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Please read the section carefully and note that you are
signing under penalty of perjury. Therefore, you should
make sure all of the information you enter on this form is
correct.
Sign and date the form.
Note that when you sign the form, you are agreeing to the
following: “I hereby assign and transfer to the U.S.
Department of Education . . . any right to a refund on the
amount discharged that I may have received from the
school identified in Section 2 of this form and/or any
owners, affiliates, or assignees of the school, and from any
third party that may pay claims for a refund because of the
actions of the school, up to the amount discharged by the
Department on my loan(s).”
If you are considering filing a lawsuit against the closed
school or any of its owners, then you should talk to an
attorney about this provision before you send in your
discharge application, as it may affect your rights to seek
redress from the closed school or its owners through a
lawsuit.
This Packet is not meant to provide a legal opinion, offer advice, or substitute for the advice of a licensed attorney.
10/14/2013 - Page 13
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Step 4: Other Documents to Include With Your Application
Draft a Cover Letter to Request Forbearance
 The Department of Education may not automatically stop collecting on your loan while your
application is pending. Therefore, it is important for you to write a simple cover letter
requesting that the Department not collect on your loan(s) while your closed school discharge
application is pending.
 This is called a “forbearance.” If granted, the Department will not seek repayment on the loan,
although interest will continue to accrue. If your application is granted, you will not have to pay
back this interest.
 A sample letter is included as Attachment B to this packet.
 You may simply include the following language in your letter:
o “I am applying for a closed school discharge of my student loans by submitting the enclosed
Loan Discharge Application and documents. I request a forbearance while my discharge
application is pending. In other words, I request that the Department and any contractors or
loan servicers it hires to collect on my loans cease all collection efforts while my discharge
application is pending.”
Your Application Packet Should Include:
 Completed Application Form
 Cover letter
 Your enrollment agreement, if you have it. If you don’t have a copy, you may request one
from the school or from the state agency that took control of your school’s documents.
However, if you are unable to get a copy, you should submit your application without it.
 If you withdrew within 120 days before your school closed, any documents you have showing
your date of withdrawal.
 If you were on a leave of absence when the school closed, include
o A copy of the school document approving your leave of absence;
o Or if you don’t have this, provide a statement explaining
 Why and when you asked for the leave.
 When the leave was approved by the school.
 When the leave was supposed to end and you were supposed to go back to school.
 Whether you tried to obtain documentation after the school closed and what happened.
 A sample declaration is attached as Exhibit C.
If Possible, Include These Additional Items:
 Any newspaper articles that would confirm the school’s closure.
 Any notices from the school confirming the school’s date of closure.
 Any notices from your state stating that the school has officially closed.
This Packet is not meant to provide a legal opinion, offer advice, or substitute for the advice of a licensed attorney.
10/14/2013 - Page 14
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Step 5: Submitting Your Application and Waiting for a Decision
Submitting Your Application
 Put your signed and dated application and cover letter with the above documents, and make a
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complete copy of the entire package for your records.
Make sure to keep a copy for yourself. Sometimes the government loses applications and you
may have to resubmit everything.
Send the cover letter and application with your original signature, along with all your
documentation, to your “loan servicer.”
To find your loan servicer:
o Call 1-800-4-FED-AID (1-800-730-8913); or
o Check on the National Student Loan Data System at:
www.nslds.ed.gov/nslds_SA/SaFinLoginPage.do
To find your Personal Identification Number (PIN):
o Go to http://www.pin.ed.gov/PINWebApp/pinindex.jsp
o If you get a new PIN, you should be able to log on about one week after you request it.
Waiting for a Decision
 You should receive a written letter in the mail that your loan servicer has received your
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application. If you do not, call your loan servicer to find out the status of your application.
The loan servicer will take some time to review your application and may ask for more
information. If it does ask for more information, do your best to respond quickly.
The loan servicer will eventually send you a notice explaining whether your application is
granted or denied.
If your closed school discharge application is granted, you will no longer be obligated to repay
your loan(s) or any charges or costs associated with the loan(s). In addition, you should be
reimbursed for all amounts you paid on your loan(s). Finally, if you made any late payments or
defaulted on your loan(s), the Department should remove any negative information from your
credit reports.
If your application is denied, you may seek review of the loan servicer’s decision from the U.S.
Department of Education, although the Department is not required to review the loan
servicer’s decision. You may also appeal to federal district court. If this happens to you, call
your local legal aid office.
You can find contact information for your local legal aid office here: lsc.gov/find-legal-aid.
This Packet is not meant to provide a legal opinion, offer advice, or substitute for the advice of a licensed attorney.
10/14/2013 - Page 15
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Step 6: Information on Your Private Loans or Cash Payments
 Although private loans are not eligible for federal loan discharges, you may qualify
for a refund or payment of those loans, plus reimbursement for any cash you paid
to your school, if your state has a “student tuition recovery fund.” This is a special
fund some states set up to provide monetary relief to students’ whose schools
close.
 To determine whether your state has such a fund, whether you would qualify, and
how to apply, you should contact the agency in your state that was responsible
for regulating your school. The National Consumer Law Center has a list of state
tuition recovery funds and agencies here:
http://www.studentloanborrowerassistance.org/loan-cancellation/stateprograms/%20%20h
 If you have a complaint related to a private student loan or other financial
product offered by your school, you can submit a complaint to the Consumer
Financial Protection Bureau at: www.consumerfinance.gov/complaint. You can
also contact that Bureau by emailing [email protected].
 In addition, some private lenders may grant partial closed school loan
discharges. You may contact your private lender to find out whether it has any
kind of closed school loan discharge program.
This Packet is not meant to provide a legal opinion, offer advice, or substitute for the advice of a licensed attorney.
10/14/2013 - Page 16
LOAN DISCHARGE APPLICATION: SCHOOL CLOSURE
OMB No. 1845-0058
Form Approved
Exp. Date 08/31/2017
William D. Ford Federal Direct Loan (Direct Loan) Program, Federal Family
Education Loan (FFEL) Program, and Federal Perkins Loan Program
WARNING: Any person who knowingly makes a false statement or misrepresentation on this form or on any
accompanying document is subject to penalties that may include fines, imprisonment, or both, under the U.S. Criminal
Code and 20 U.S.C. 1097.
SECTION 1: BORROWER IDENTIFICATION
Please enter or correct the following information.
Check this box if any of your information has changed.
SSN ___ ___ ___ - ___ ___ - ___ ___ ___ ___
Name ____________________________________
Address ____________________________________
City, State, Zip Code ____________________________________
Telephone – Primary ( _______ ) _______ - _____________
Telephone – Alternate ( _______ ) _______ - _____________
E-mail (optional) ____________________________________
SECTION 2: SCHOOL CLOSURE INFORMATION
1. You are applying for this loan discharge as a:
Student borrower – Skip to Item 4.
Parent borrower – Continue to Item 2.
2. Student Name (Last, First, MI):
_________________________________________
3. Student SSN:
___ ___ ___ - ___ ___ - ___ ___ ___ ___
4. Closed School Name:
_________________________________________
5. Closed School Address (street, city, state, zip):
_________________________________________
_________________________________________
6. Dates of attendance at the closed school:
___ ___ - ___ ___ - ___ ___ ___ ___ to
___ ___ - ___ ___ - ___ ___ ___ ___
7. Name of the program you (or, for a parent PLUS
borrower, the student) were enrolled in at the
time the school closed:
_________________________________________
8. Did you (or, for a parent PLUS borrower, the
student) complete the program of study at the
closed school?
Yes – You are not eligible for this discharge.
10. Were you (or, for a parent PLUS borrower, the
student) still enrolled in the program of study
when the school closed?
Yes – Skip to Item 13.
No – Continue to Item 11.
11. Did you (or, for a parent PLUS borrower, the
student) withdraw from the school before the
school closed?
Yes – Continue to Item 12.
No – Skip to Item 13.
12. On what date did you withdraw from the school?
___ ___ - ___ ___ - ___ ___ ___ ___
13. Did you (or, for a parent PLUS borrower, the
student) complete or are you in the process of
completing the same or a comparable program of
study at another school?
Yes – Continue to Item 14.
No – Skip to Item 16.
14. Are you (or, for a parent PLUS borrower, the
student) completing the new program through a
teach-out agreement (see Section 5)?
Yes – You are not eligible for this discharge.
No – Continue to Item 9.
9. Were you (or for a parent PLUS borrower, the
student) on an approved leave of absence when
the school closed?
Yes – Provide the dates of the leave of
absence, then skip to Item 13:
___ ___ - ___ ___ - ___ ___ ___ ___ to
___ ___ - ___ ___ - ___ ___ ___ ___
No – Continue to Item 10.
No – Continue to Item 15.
15. Did the other school give you (or, for a parent
PLUS borrower, the student) credit for training
received at the closed school by allowing transfer
credits or hours earned at the closed school, or by
any other comparable means?
Yes – You are not eligible for this discharge.
No – Continue to Item 16.
Page 1 of 5
Borrower Name: ______________________________ Borrower SSN: ___ ___ ___ - ___ ___ - ___ ___ ___ ___
SECTION 2: SCHOOL CLOSURE INFORMATION (CONTINUED)
16. Did the holder of your loan receive any money back (a
refund) from the closed school on your behalf?
20. Provide the following about the party with whom the
claim was made or from whom payment was received:
Yes – Continue to Items 17– 19.
a. Name: ___________________________________
No – Skip to Item 19.
b. Address (street, city, state, zip code):
Don’t Know – Skip to Item 19.
_________________________________________
_________________________________________
17. What was the amount of the refund?
c. Telephone number:
$___________________________________________
18. Explain why the money was refunded:
____________________________________________
____________________________________________
____________________________________________
19. Did you (or, for a parent PLUS borrower, the student)
make any monetary claim with, or receive any
payment from, the closed school or any third party
(see definition in Section 5) in connection with
enrollment or attendance at the school?
Yes – Continue to Items 20 – 22.
No – Sign and date the form in Section 3. Submit
the form to the loan holder in Section 7.
Don’t Know – Sign and date the form in Section 3.
Submit the form to the loan holder in Section 7.
( _______ ) _______ - _____________
21. What is the amount and the status of the claim?
a. Amount: $________________________________
b. Status:
_________________________________________
_________________________________________
_________________________________________
22. What was the amount of any payment received? If
none, write “none”.
$___________________________________________
Sign and date the form in Section 3. Submit the form to
the loan holder in Section 7.
SECTION 3: BORROWER CERTIFICATIONS, ASSIGNMENT, AND AUTHORIZATION
§
I certify that: (1) I received the Direct Loan, FFEL, or Perkins Loan Program loan funds directly, or as a credit that was
applied to the amount owed to the school; (2) I (or, if I am a parent PLUS borrower, the student) was enrolled at the
school identified in Section 2, was on an approved leave of absence on the date that the school closed, withdrew
from the school not more than 120 days before it closed, or withdrew from the school more than 120 days before it
closed if the Department determines that exceptional circumstances related to the school’s closing justify an
extension of this 120-day period (see Section 6); (3) Due to school closure, I (or, if I am a parent PLUS borrower, the
student) did not complete the program of study at the closed school; (4) I (or, if I am a parent PLUS borrower, the
student) did not complete and am not in the process of completing the program or a comparable program of study
at the closed school at another school through a teach-out, by transferring credits or hours earned at the closed
school to another school, or by any other comparable means; (5) I have read and agree to the terms and conditions
for loan discharge, as specified in Section 6; (6) Under penalty of perjury, all of the information I have provided on
this form and in any accompanying documentation is true and accurate to the best of my knowledge and belief.
§
I hereby assign and transfer to the U.S. Department of Education (the Department) any right to a refund on the
amount discharged that I may have received from the school identified in Section 2 of this form and/or any owners,
affiliates, or assignees of the school, and from any third party that may pay claims for a refund because of the
actions of the school, up to the amount discharged by the Department on my loan(s).
§
I authorize the loan holder to which I submit this request (and its agents or contractors) to contact me regarding my
request or my loan(s), including repayment of my loan(s), at the number that I provide on this form or any future
number that I provide for my cellular telephone or other wireless device using automated telephone dialing
equipment or artificial or prerecorded voice or text messages.
Borrower’s Signature _____________________________________________ Date ___ ___ - ___ ___ - ___ ___ ___ ___
Page 2 of 5
SECTION 4: INSTRUCTIONS FOR COMPLETING THE FORM
When completing this form, type or print using dark ink. Enter dates as month-day-year (mm-dd-yyyy). Use only
numbers. Example: March 14, 2014 = 03-14-2014. If you need more space to answer any of the items, continue on
separate sheets of paper and attach them to this form. Indicate the number of the Item(s) you are answering and
include your name and Social Security Number (SSN) on the top of page 2 and on all attached pages. Return the
completed form and any attachments to the address shown in Section 7.
SECTION 5: DEFINITIONS
§
§
§
§
§
§
The William D. Ford Federal Direct Loan (Direct Loan)
Program includes Federal Direct Stafford/Ford (Direct
Subsidized) Loans, Federal Direct Unsubsidized
Stafford/Ford (Direct Unsubsidized) Loans, Federal
Direct PLUS (Direct PLUS) Loans, and Federal Direct
Consolidation (Direct Consolidation) Loans.
The Federal Family Education Loan (FFEL) Program
includes Federal Stafford Loans (both subsidized and
unsubsidized), Federal Supplemental Loans for
Students (SLS), Federal PLUS Loans, and Federal
Consolidation Loans.
The Federal Perkins Loan (Perkins Loan) Program
includes Federal Perkins Loans, National Direct Student
Loans (NDSL), and National Defense Student Loans
(Defense Loans).
The date a school closed is the date that the school
stopped providing educational instruction in all
programs as determined by the Department.
Dates of attendance: The “to” date means the last
date that you (or, for a parent PLUS borrower, the
student) actually attended the closed school.
The holder of your Direct Loan Program loan(s) is the
Department. The holder of your FFEL Program loan(s)
may be a lender, a guaranty agency, or the
Department. The holder of your Perkins Loan Program
loans may be a school or the Department. Your loan
holder may use a servicer to handle billing and other
communications related to your loans. References to
“your loan holder” on this form mean either your loan
holder or your servicer.
§
§
§
§
§
§
Loan discharge due to school closure cancels your
obligation (and any endorser’s obligation, if applicable)
to repay the remaining portion on a Direct Loan, FFEL,
or Perkins Program loan, and qualifies you for
reimbursement of any amounts paid voluntarily or
through forced collection on the loan. For
consolidation loans, only the amount of the underlying
loans that were used to pay for the program of study
listed in Section 2 will be considered for discharge. The
loan holder reports the discharge to all credit reporting
agencies to which the holder previously reported the
status of the loan and removes any adverse credit
history previously associated with the loan.
The student refers to the student for whom a parent
borrower obtained a Direct PLUS Loan or Federal PLUS
Loan.
Program of study means the instructional program
leading to a degree or certificate in which you (or, for
parent PLUS borrowers, the student) were enrolled.
School means the school’s main campus, or any
location or branch of the main campus.
Teach-out agreement means a written agreement
between schools that provides for the equitable
treatment of students and a reasonable opportunity
for students to complete their program of study if a
school ceases to operate before all students have
completed their program of study.
Third party refers to any entity that may provide
reimbursement for a refund owed by the closed
school, such as a State or other entity offering a tuition
recovery program or a holder of a performance bond.
SECTION 6: TERMS AND CONDITIONS FOR LOAN DISCHARGE BASED ON SCHOOL CLOSURE
§
§
§
§
You are only eligible for this form of discharge if you
received the loan on which you are requesting
discharge on or after January 1, 1986.
You are only eligible for this form of discharge if the
location or campus that you were attending closed. If
you were taking distance education classes, you are
only eligible for discharge if the main campus of your
school closed.
You must have been enrolled at the closed school or on
an approved leave of absence on the date that the
school closed, or withdrawn from the school not more
than 120 days before it closed to be eligible for this
form of discharge.
If you withdrew more than 120 days before the school
closed, you may be eligible for this form of discharge if
the Department determines that exceptional
circumstances related to the school’s closing justify an
extension of this 120-day period. Examples of
exceptional circumstances include, but are not limited
to: (1) the closed school’s loss of accreditation; (2) the
closed school’s discontinuation of the majority of its
academic programs; (3) action by the State to revoke
the closed school’s license to operate or award
academic credentials in the State; or (4) a finding by a
State or Federal government agency that the closed
school violated State or Federal law.
Page 3 of 5
SECTION 6: TERMS AND CONDITIONS FOR LOAN DISCHARGE BASED ON SCHOOL CLOSURE (CONTINUED)
§
By signing this form, you are agreeing to provide, upon §
request, testimony, a sworn statement, or other
documentation reasonably available to you that
demonstrates to the satisfaction of the Department or §
its designee that you meet the qualifications for loan
discharge based on school closure, or that supports any
representation that you made on this form or any
accompanying documents.
SECTION 7: WHERE TO SEND THE COMPLETED FORM
By signing this form, you are agreeing to cooperate
with the Department or the Department’s designee in
any enforcement action related to this application.
This application may be denied, or your discharge may
be revoked, if you fail to provide testimony, a sworn
statement, or documentation upon request, or if you
provide testimony, a sworn statement, or
documentation that does not support the material
representation that you made on this form or on any
accompanying documents.
If you need help completing this form, call:
(If no telephone number is shown, call your loan
holder.)
Return the completed form and any required
documentation to:
(If no address is shown, return to your loan holder.)
SECTION 8: IMPORTANT NOTICES
Privacy Act Notice. The Privacy Act of 1974 (5 U.S.C.
552a) requires that the following notice be provided to
you:
The authorities for collecting the requested information
from and about you are §421 et seq., §451 et seq. and
§461 et seq. of the Higher Education Act of 1965, as
amended (20 U.S.C. 1071 et seq., 20 U.S.C. 1087a et seq.,
and 20 U.S.C. 1087aa et seq.) and the authorities for
collecting and using your Social Security Number (SSN) are
§§428B(f) and 484(a)(4) of the HEA (20 U.S.C. 1078-2(f)
and 20 U.S.C. 1091(a)(4)) and 31 U.S.C. 7701(b).
Participating in the William D. Ford Federal Direct Loan
(Direct Loan) Program, the Federal Family Education Loan
(FFEL) Program, or the Federal Perkins Loan (Perkins Loan)
Program and giving us your SSN are voluntary, but you
must provide the requested information, including your
SSN, to participate.
The principal purposes for collecting the information on
this form, including your SSN, are to verify your identity,
to determine your eligibility to receive a loan or a benefit
on a loan (such as a deferment, forbearance, discharge, or
forgiveness) under the Direct Loan, FFEL, or Perkins Loan
Programs, to permit the servicing of your loan(s), and, if it
becomes necessary, to locate you and to collect and
report on your loan(s) if your loan(s) becomes delinquent
or defaults. We also use your SSN as an account identifier
and to permit you to access your account information
electronically.
The information in your file may be disclosed, on a caseby-case basis or under a computer matching program, to
third parties as authorized under routine uses in the
appropriate systems of records notices. The routine uses
of this information include, but are not limited to, its
disclosure to federal, state, or local agencies, to private
parties such as relatives, present and former employers,
business and personal associates, to consumer reporting
agencies, to financial and educational institutions, and to
guaranty agencies in order to verify your identity, to
determine your eligibility to receive a loan or a benefit on
a loan, to permit the servicing or collection of your loan(s),
to enforce the terms of the loan(s), to investigate possible
fraud and to verify compliance with federal student
financial aid program regulations, or to locate you if you
become delinquent in your loan payments or if you
default. To provide default rate calculations, disclosures
may be made to guaranty agencies, to financial and
educational institutions, or to state agencies. To provide
financial aid history information, disclosures may be made
to educational institutions. To assist program
administrators with tracking refunds and cancellations,
disclosures may be made to guaranty agencies, to financial
and educational institutions, or to federal or state
agencies. To provide a standardized method for
educational institutions to efficiently submit student
enrollment statuses, disclosures may be made to guaranty
agencies or to financial and educational institutions. To
counsel you in repayment efforts, disclosures may be
made to guaranty agencies, to financial and educational
institutions, or to federal, state, or local agencies.
In the event of litigation, we may send records to the
Department of Justice, a court, adjudicative body, counsel,
party, or witness if the disclosure is relevant and necessary
Page 4 of 5
to the litigation. If this information, either alone or with
other information, indicates a potential violation of law,
we may send it to the appropriate authority for action.
We may send information to members of Congress if you
ask them to help you with federal student aid questions.
In circumstances involving employment complaints,
grievances, or disciplinary actions, we may disclose
relevant records to adjudicate or investigate the issues. If
provided for by a collective bargaining agreement, we may
disclose records to a labor organization recognized under
5 U.S.C. Chapter 71. Disclosures may be made to our
contractors for the purpose of performing any
programmatic function that requires disclosure of records.
Before making any such disclosure, we will require the
contractor to maintain Privacy Act safeguards. Disclosures
may also be made to qualified researchers under Privacy
Act safeguards.
Paperwork Reduction Notice. According to the
Paperwork Reduction Act of 1995, no persons are required
to respond to a collection of information unless such
collection displays a valid OMB control number. The valid
OMB control number for this information collection is
1845-0058. Public reporting burden for this collection of
information is estimated to average 30 minutes per
response, including time for reviewing instructions,
searching existing data sources, gathering and maintaining
the data needed, and completing and reviewing the
collection of information. The obligation to respond to
this collection is required to obtain or retain a benefit (34
CFR 682.402(e)(3), or 685.215(c)). If you have comments
or concerns regarding the status of your individual
submission of this form, contact your loan holder(s) (see
Section 7) directly.
Page 5 of 5
[Date]
[Loan Servicer Name]
[Servicer Address]
Re: Closed School Loan Discharge Application and Request for Forbearance
Dear Sir or Madam:
I am formally applying for a closed school discharge of my student loans. With this letter, I
have enclosed my completed closed school student loan discharge application and supporting
documents. If there is any additional information that is required, or if any information is
missing, please contact me immediately using my contact information below.
Additionally, while my discharge application is pending, I request that you put my federal
loans into forbearance. In other words, I request that the Department and any contractors or
loan servicers it hires to collect on my loans cease all collection efforts while my discharge
application is pending.
Please confirm that you have received my application and that my loans will be placed in
forbearance while my loan discharge application is pending.
Thank you for your cooperation.
Sincerely,
[Your name]
[Your address]
[Your phone number]